Thornton Taxes Explained
Sales Tax
The City of Thornton levies a sales tax on tangible personal
property or taxable services which are purchased, sold, leased or rented in the
City. The term “in the City” includes any personal property or taxable service
that is provided or delivered to the purchaser within City limits. Sales tax is
a transaction tax that is collected and remitted by a retailer. Retailers collect a total of 8.6% for sales made in Thornton. The City portion (3.75%) must be remitted directly to Thornton. The remainder of the taxes (4.85%) are remitted directly to the State of Colorado.
View a map of Thornton’s boundaries: Boundary Map
The City portion (3.75%) must be remitted directly to Thornton.
The remainder of the taxes (4.85%) are remitted directly to the State of Colorado.
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Taxable Items
Some examples of items subject to Thornton’s sales and use
tax are as follows:
- Automobiles
- Computer software
- Cable television
- Linen services
- Maintenance contracts
- Restaurant food
- Tangible personal property
- Food for home consumption (groceries)
- Gas and electric service
- Telecommunication services
- Cover/door/admission charges
- Recreation services
- Automated or hand held car wash
- Construction equipment
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Use Tax
Use tax is a complement to sales tax. If City sales tax has
not been charged on a taxable item or service, then use tax is due. The
purchaser is responsible for reporting use tax. Use tax should be reported on
line 10 of the City Sales and Use Tax Return. Download and print form: Tax Return
Sometimes another city’s tax is paid on items brought into Thornton.
If that city’s tax is less than Thornton’s, then the difference between the two
rates is due as use tax. Some examples of use taxable transactions follow.
Use Tax Examples
Example #1 - ABC Company purchases a computer from a store
located outside of Thornton. The store charged 7.1% sales tax (4.1% State + RTD
and 3.0% city tax). ABC Company brings the computer back to Thornton to use in
the business.
The difference in the store’s city rate and Thornton’s
is 0.75% (3.75% - 3.0%). ABC Company owes use tax to the City of Thornton
at a rate of 0.75%.
Example #2 - XYZ Manufacturing ordered a computer over the
internet. XYZ received the computer and invoice; there was no sales tax on the
invoice.
XYZ has not paid any city sales tax on this computer and
owes use tax to Thornton at a rate of 3.75%.
Example #3 – ABC Company’s corporate headquarters are in Texas.
ABC Company ordered a new computer. The Computer was delivered to corporate
headquarters in Texas, and later shipped to their Thornton location. A review
of the invoice shows Texas sales tax of 8.75% was charged.
Sales tax equal to or greater than Thornton’s
rate has already been paid. No use tax is due on this transaction.
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Lodging Tax
The City of Thornton levies a lodging tax on the price paid
or charged for the lease, rental or furnishing of rooms or other public
accommodations. The lodging tax rate is 7.0% and is levied in lieu of sales
tax. Customers who enter into a written agreement for occupancy of a room or
public accommodation for a period of thirty or more consecutive days are exempt
from this tax.
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Telephone Tax
The City of Thornton levies a telephone tax on any business
providing local exchange telephone service to inhabitants of the City. The
amount of the tax is $8.00 per local telephone account per year. The tax is due
and payable in four quarterly installments. Each installment is due 30 days after
each quarterly period.
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E-911 Surcharge
The City of Thornton E-911 Authority levies a $.70 surcharge
per month on each telephone account. The surcharge is collected from
Thornton residents and businesses on their monthly telecommunication bill.
The surcharge is used to pay for a portion of equipment, personnel,
technology maintenance, and other authorized costs pursuant to State statute for the City
to provide emergency response service.
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